The Chart Below Describes the § 1231 Assets Sold by the Ecru

question 58

Essay

The chart below describes the § 1231 assets sold by the Ecru Company (a sole proprietorship) this year.Compute the gain or loss from each asset disposition and determine the net § 1231 gain treated as long-term capital gain for the year.Assume there is a § 1231 lookback loss of $4,000. $$\begin{array} { l c c c c c } \text { Asset } & \text { Acquired } & \text { Sold } & \text { Cost } & \text { Depreciation } & \text { Sale Price } \\\text { Stamping } & 3 / 10 / 13 & 8 / 10 / 17 & \$ 40,000 & \$ 29,736 & \$ 32,000 \\\text { machine } & & & & & \\\begin{array} { l } \text { Factory } \\\text { building }\end{array} & 2 / 12 / 10 & 7 / 23 / 17 & 80,000 & 18,838 & 90,000 \\\text { Tractor } & 5 / 16 / 12 & 11 / 13 / 17 & 52,000 & 52,000 & 30,000 \\\begin{array} { l } \text { Overhead } \\\text { crane }\end{array} & 11 / 12 / 06 & 2 / 25 / 17 & 74,000 & 74,000 & 18,000\end{array}$$ ?

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Tim Brown

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